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Page

The key features of the new syllabus 02

Subjects - New Syllabus & Previous Syllabus 03

Curriculum Model 04

Level of Testing 05

Foundation Level Examination

Basic Accounting 06 - 08

Economics 09 - 10

Business Studies 11 - 12

Business Communication - I 13 - 14

Intermediate Level Examination

Business Mathematics & Statistics 15 - 17

Accounting & Control Systems 18 - 20

Information Management & Application in Business 21 - 24

Business Law and Management 25 - 29

Final Level Examination

Taxation 30 - 32

Management Accounting & Business Finance 32 - 36

Advanced Financial Accounting 37 - 38

Auditing 39 - 41

Business Communication - II 42 - 44

Examination Structure 45

Exemptions under the New Syllabus 46 - 47

Suggested Weightings & Study Time Allocation 48 - 50

Structure of Question Papers - New Syllabus 51 - 52

CONTENTS

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(i) Total number of subjects:The total number of subjects is 13 as in the previous syllabus.

(ii) Structure and Subjects:(a) Examination Structure:Examination Levels remain as three Foundation, Intermediate and Final as it was in the previous syllabus.

(b) The Foundation Level: Objectives:To provide the students with basic understanding of Financial and Cost Accounting Principles, to enrich the knowledge of students on Principles of Economics & Business Studies including changes that are taking place in The global Economic and Business environment.

The Foundation Level consists of four subjects.• BasicAccounting• Economics• BusinessStudies• BusinessCommunication-I

The salient feature of this new syllabus for Foundation level is that it has taken into account the changes that are taking place at the global economy and business environment, including basic understanding of Business and Professional Ethics.

Business Communication - I is designed especially to develop the students’ Communication & Reporting Skills, and to provide a comprehensive knowledge on English Grammar.

After successful completion of Foundation level, a student can proceed to the Intermediate level. However, the option of sitting for Foundation and Intermediate level subjects together remains unchanged.

(c) The Intermediate Level: Objectives:The main objective is to provide in-depth knowledge on Financial Accounting and Information Management and to provide them a basic understanding on Business Law and Management Principles.

The Intermediate Level consists of four subjects.• BusinessMathematics&statistics• Accounting&ControlSystems• InformationManagement&Applicationin Business• BusinessLaw&Management

After successful completion of Foundation and Intermediate levels, student is entitled to proceed for the Final level.

Students can benefit from the “subject by subject pass scheme” for both the Foundation and Intermediate level examinations.

(d) The Final Level: Objectives:The Final level syllabus mainly aims to develop students’ skills on Financial Reporting, Regulatory Framework including Auditing and Taxation of the businesses.

The Final Level consists of four subjects.• Taxation• ManagementAccounting&BusinessFinance• AdvancedFinancialAccounting• Auditing

Optional Business Communication - II

Business Communication - II will mainly focus on Business English. The knowledge obtained from Foundation level Business Communication will be useful in the learning process of Final level Business Communication subject.

After successful completion of Final level, a student will achieve the status of a Passed Finalist and after successful completion of prescribed period of practical training requirement & Business Communication - II Paper he/she can apply for AATSL membership.

(iii) Practical Training Requirements:According to the previous syllabus, in addition to passing the examinations conducted by the Association, registered students had to undergo two years with 2,500 hours of full time Practical Training before they become eligible for Membership of the Association. This procedure remains unchanged in this syllabus too.

THE KEY FEATURES OF THE NEW SYLLABUS

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FOUNDATION LEVEL

25 Basic Financial Accounting

26 Business Mathematics (50%) and

Statistics (50%)

27 Economics

28 Commerce

INTERMEDIATE LEVEL

29 Accounting (80%) & Principles of

Auditing (20%)

30 Management Information Systems (MIS)

& Information Technology (IT)

31 Business Law (50%) and Management

(50%) (Two Papers)

32 Business Communication - I

FINAL LEVEL

33 Taxation Practice

34 Cost & Management Accounting (80%)

and Quantitative Techniques (QT) (20%)

35 Advanced Financial Accounting

36/38 Auditing OR Public Sector Accounting

39 Business Communication - II

(English) - (Optional)

Name of the Subjects - New Syllabus & Previous Syllabus

FOUNDATION LEVEL

50 Basic Accounting

51 Business Mathematics (60%) and

Statistics (40%)

(W.e.f January 2012. examination in Intermediate level)

52 Economics

53 Business Studies

INTERMEDIATE LEVEL

54 Accounting (70%) & Control Systems

(30%)

55 Information Management & Application

in Business

56 Business Law (50%) and Management

(50%) (Two Papers)

57 Business Communication – I

Communication (50%) and

English Language (50%)

(W.e.f January 2012. examination in Foundation level)

FINAL LEVEL

58 Taxation

59 Management Accounting (75%) and

Business Finance (25%)

60 Advanced Financial Accounting

61 Auditing

62 Business Communication - II

(English) - (Optional)

AATSL program consists of Foundation, Intermediate and Final level examinations.

Courses of all three levels, a comparison of existing and new syllabus including credit values for each subject

are as follows:

SUBJECTSUNDER 2005 SYLLABUS

SUBJECTSUNDER 2010 SYLLABUS

Practical Training(Two years with 2500 hours)

Practical Training (Two years with 2500 hours)

Subject No.

Subject No.

Subject No.

Subject No.

Subject No.

Subject No.

Number of Credits

Number of Credits

Number of Credits

4

5

3

2

4

3

4

3

4

4

4

4

-

16

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CU

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ICU

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MO

DEL

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Busi

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Com

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Taxa

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Audi

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Busi

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LEVEL OF TESTING

Detailed syllabus of each course consists of learning outcomes, topics and weightings, and the sub topics with

level of study. In accordance with the Bloom’s taxonomy of educational objectives three levels of study have

been identified as follows.

Knowledge - Exhibits memory of facts, terms,

basic concepts and answers

Type of testing: List, Name, Define, Describe,

Identify, State, Enumerate, Locate, Select

Application - Using new knowledge to solve

problems by applying acquired knowledge,

facts, techniques and rules

Type of testing: Organize, Prepare, Produce,

Choose, Generalize, Sketch, Apply, Solve, Draw,

Show

Synthesis - Compile information together in a

different way by combining elements in a new

pattern or proposing alternative solutions

Type of testing: Compose, Organize, Develop,

Design, Combine, Construct, Produce, Plan,

Create

Evaluation - present and defend opinions by

making judgments about information, validity

of ideas or quality of work based on a set of

criteria

Type of testing: Judge, Weight, Criticize,

Support, Evaluate, Critique, Recommend,

Summarize, Appraise, Compare, Contrast

Analysis - Examine and break information

into parts by identifying motive or causes.

Make inferences and find evidence to support

generalizations.

Type of testing: Compare, Analyze, Classify,

Point out, Distinguish, Categorize, Differentiate,

Subdivide, Infer, Select, Prioritize

Comprehension - Demonstrative understanding

of facts and ideas by organizing, comparing,

translating, interpreting, giving descriptions

and stating main ideas

Type of testing: Give examples, Express,

Illustrate, Explain, Defend, Distinguish,

Interpret

Level C: Knowledge and Comprehension

Level B: Application and Analysis

Level A: Synthesis and Evaluation

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BASIC FINANCIAL ACCOUNTING (85%)

» Basic Principles, Outline Concepts and

principles underlying accounting and financial statements Level of Study

• Businessenvironment C

• Needofaccounting C

• Objectivesoffinancialstatements C

• Qualitativecharacteristicsstatedin“frameworkforthepreparationand

presentation of financial statements.” Issued by the ICASL C

• Usesandusersoffinancialstatements C

• Capital&Revenueexpenditure C

• Concepts:accruals,goingconcern,entity,consistency,realization,Cost,

money measurement, matching, periodicity, prudence, materiality, comparability C

• Cashbasis&accrualbasis B

» Accounting Process

• Accountinginputsandoutputs A

• Basicaccountingequation A

Foundation Level Examination

50 BASIC ACCOUNTING

Course DescriptionThis course intends to develop knowledge and understanding of the underlying principles and concepts relating to basic accounting and technical proficiency in the use of double-entry accounting techniques including the preparation of financial statements for various types of organizations.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. Identify business environment and its relation to accounting process.

2. Understanding the needs of maintenance of financial records.

3. Identify the source of information needed to record transactions.

4. Identify accounting equation, concepts and accounting principles.

5. Prepare daybooks, journals and statements of bank reconciliations.

6. Record transactions in the ledger accounts using double entry theory.

7. Maintain control accounts and subsidiary ledgers.

8. Identify and explain the objectives of financial statements.

9. Prepare a set of financial statements comprising of manufacturing, trading,

and profit & loss account (income statement) and balance sheet

(Statement of Financial Position) of a sole proprietorship.

10. Understanding Basic Principles of Cost Accounting

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• Doubleentryprinciples A

• Transactionsandusageofsourcedocuments A

• Recordingtransactionsfromsourcedocumentsandmaintenanceofprimeentrybooks A

• ElementsofAccounting:income,expenses,assets,liabilities&equity A

• Maintenanceofledgeraccounts A

• Classificationofledgeraccounts A

• Journalanditsfunctions A

• Differenttypesofcashbooks:single,double&treblecolumn,

receipts, payments, petty cash and petty cash imprest system A

• Statementofbankreconciliation A

• Balancingofledgeraccountsandpreparationoftrialbalance A

• Classoferrorsandcorrectionoferrors B

• Useofthesuspenseaccount A

» Adjustments to be incorporated in preparation of financial statements

• Accrualsandprepayments B

• Badanddoubtfuldebts B

• StocksandIntentoryvaluations B

• Depreciationandmethodsofdepreciation B

• Acquisitionanddisposal/exchangeofproperty,plant&equipment B

» Preparation of financial statements for sole proprietorships

• TradingProfit&LossAccount(IncomeStatement) B

• BalanceSheet(StatementofFinancialPosition) B

• Proprietors’CapitalandCurrentAccounts B

» Manufacturing Accounts B

» Control Accounts and Subsidiary Ledgers for Receivables and Payables

• Debtors/ReceivablesLedger B

• DebtorsControlAccount B

• Creditors/PayablesLedger B

• CreditorsControlAccount B

• PreparationofFinancialStatementsfromIncompleteRecords

for a Sole-Proprietorship B

» Basic understanding of Business and Professional Ethics C

BASIC COST ACCOUNTING (15%)

Cost Classifications

» Production and Non production costs

• Distinguishbetweenproductionandnonproductioncosts B

• Ascertaintheelementsofproductioncost-materials,labour,expenses,andoverheads B

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• Explaintheelementsofnonproductioncost-administrative,

selling and distribution and finance B

» Direct and indirect costs

• Identificationofdirectandindirectcostsinmanufacturingand

non-manufacturing organizations B

• Explainexamplesofdirectandindirectcostsinmanufacturingand

non-manufacturing organizations B

Cost Accounting Techniques

» Materials

• Explaindifferentproceduresanddocumentsusedinordering,

receiving and issuing of materials from stores B

• ExplainFIFOandWACpricingmethodsforissuingofinventories B

» Labour

• Identificationofdirectandindirectlabourcosts B

• Explaindifferentproceduresanddocumentsusedinrecordinglabourcost B

• MethodsofPaymentforlabour B

» Overheads

• Explainthemeaningofoverheadswithexamples B

• Distinguishbetweenproductionandnonproductionoverheads B

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52 ECONOMICS

Course Description

This course of basic economics intends to introduce basic principles, concepts, theories and tools and methods

of analyses that are necessary to understand and analyse the impact of micro, macro and global economic

environments and their changes on the business.

In brief this course discusses the theory of demand and supply, theories of consumer behaviour and production,

various market structures, aggregate demand and supply, national income, inflation, government policies,

world economy and the changes and trends of global economic environment and their implications to the

business.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. Understand the principal features of the economic environment.

2. Understand micro and macro economic concepts and theories.

3. Understand the impacts of micro and macro concepts and theories on the business.

4. Understand the implications of basic macro economic principles such as; aggregate demand, aggregate

supply, GDP, GNP, interest rates, inflation and exchange rates.

5. Understand the impact of government economic policies on the business.

6. Understand the impacts and implications of world economy and global economic trends.

Detailed Syllabus Level of Study

» Basic Economic Problems of Society

• Definitionofeconomics B

• Basiceconomicconcepts:scarcity,choice&opportunitycost B

• Productionpossibilitycurves B

• Basiceconomicproblems:what,howandforwhomtoproduce B

• Differenttypesofeconomicsystems:freemarketeconomy,

planned economy and mixed economy B

» Consumer Behavior

• Indifferencecurveanalysis C

• Utilitytheory C

• Consumersurplusandmaximizingchoice C

» Elementary Theory of Price

• Demand,supplyandpricedetermination B

• Elasticityofdemandandsupply B

• Theoryofproduction:differenttypesofcostsandrevenue B

• Lawofdiminishingreturns,economiesanddiseconomiesofscale B

• Marketstructures:perfectcompetition,oligopolyandduopolymonopoly B

• Factorsofproductionandtheirreturns:landandrent,labourandwages,

capital & interest, entrepreneur and profits B

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» Money and Price Level

• Functionsofmoney B

• Moneysupplyandmonetarypolicy,determinantsofmoneysupply,

causes and effects of inflation with special reference to Sri Lanka B

• Moneysupplyandmonetaryaggregates B

• FactorsdeterminingmoneysupplyinSriLanka B

• ObjectivesandinstrumentsofmonetarypolicyinSriLanka B

• InflationandexplainhowinflationismeasuredinSriLanka B

• Demand-pullandcostpushinflationandtheeffectsofinflation B

» National Income

• GrossDomesticProduct,GrossNationalProduct,PerCapitaIncome,BusinessCycle,

Rate of Economic Growth, Rate of Inflation and Rate of Unemployment B

• Outputincomeandexpendituremethodsestimatingnationalincome B

• GrossNationalProduct,NetNationalProduct,NationalIncome,PersonalIncomeandDisposable

Personal Income B

• DescribehowtheGrossNationalProductcanbeusedtomakecomparisonsovertimeand

between countries B

• MajorcomponentsofGrossNationalExpenditure B

• Measurementproblemsofaggregateoutput B

» Government and Economics

• Conceptsofexternalities,publicgoods,andimperfectinformation B

• Fiscalpolicyanditsinstruments;majorsourcesofgovernmentrevenueinSriLanka,

major sources of tax revenue in Sri Lanka, proportional, progressive and regressive taxes B

• BudgetdeficitsandmodesoffinancingthedeficitinSriLanka;relationshipbetween

large budget deficits and national debt and interest rates B

• ConceptsofderegulationandprivatizationinthecontextofSriLanka B

» Current developments to the subject C

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53 BUSINESS STUDIES

Course Description

This course intends to develop knowledge and understanding of the concepts of the various types of

businesses and services required by them, to describe concepts of national and international trade, to explain

the basic concepts of production, marketing and finance and human resource management with regard to

both small and large scale organizations.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. Understand the basic concepts of ‘Business’

2. Explain Classification of businesses

3. Aware about the services required by business: money and banking, insurance, transportation,

communication

4. Describe basic concepts of National and International trade

5. Understand the Capital & Money Market in Sri Lanka

Detailed Syllabus Level of Study

» Business Entities

• Typesofbusinessentities(Proprietorships,Partnerships,LimitedLiabilityCompanies,etc.) B

• Advantagesanddisadvantagesofeachtype B

» Banking and Finance Companies

• Types B

• Dutiesandrightsofabanker B

• Protectionandliabilitytoacollectingbanker B

• NegotiableInstruments,BillsofExchange,drafts,cheques,differenttypesofcrossings B

• Servicesprovidedbyfinancecompanies B

» Commercial Institutions Support to Business Organisations

• Chamberofcommerce C

• TradeAssociations C

• AdvantagesofmembershipofTradeAssociations C

• BoardofInvestment C

• ExportDevelopmentBoard C

• IndustrialDevelopmentBoard C

• SriLankaExportCreditInsuranceCorporation C

» Insurance

• Principlesofinsurance B

• Principleof“UBERIMAEFIDEI” B

• Classesofinsurance-Life,FireandMarine B

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» Money Market in Sri Lanka

• Necessityforamoneymarket B

• Moneymarketinstruments B

» Capital Market in Sri Lanka

• Necessityforasharemarket C

• Colombostockexchange:Itsorganizationandfunctions C

• Sharedealingsprocedures C

• Roleofthesecuritiesandexchangecommission C

• Unittrusts C

» Export and Import Trade

• Methods B

• Procedures-importandexport B

• Documentation B

» International Trade

• IntroductiontotheInternationaltrade B

• Absoluteadvantageandcomparativeadvantage,Barrierstotrade B

• Determinationofforeignexchangerates,factorsaffectsonexchangerates. B

• distinguishbetweenaflexibleexchangeratesystemandafixedexchangeratesystem B

• Balanceofpaymentsanditsconstituents B

• RoleofinternationalfinancialinstitutionssuchastheIMF,

World Bank, ADB and other organisations such as GAT, SAARC, WTO, SAPTA, EU B

» Current developments related to the subject C

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57 BUSINESS COMMUNICATION - I

Course Description

This module intends to familiarize students with language used in the fields of accountancy. The primary focus

of this module is to equip students to deal with accounts, audit related reading, writing and speech activities

to which the required language structures (grammar and vocabulary) have been integrated, as well as simple

office practices such as simple letters, memos, accountancy related explanations and related practical tasks.

The course also provides students with job application and interview skills. It is envisaged that the student

who successfully completes this course will have an intermediate level of proficiency in the language and will

be able to function at middle level in an accounts related environment.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. Apply skills to communication activities related to the duties of an Accounting Technician.

2. Write grammatical language.

3. Draft business letters.

4. Prepare various forms of reports.

5. Prepare documents related to company meetings.

6. Improve the knowledge of Business English.

STUDENTS CAN ANSWER IN ANY OF THE FOLLOWING LANGUAGES (50%)SINHALA, TAMIL, ENGLISH

Detailed Syllabus Level of Study

» Forms of Communication within an Organization

• Differentformsofcommunication:external/internal,verbal/written,

upward / downward, vertical / lateral B

» Language Proficiency

• Thewritingprocess B

• Commonwritingproblems B

• Majortechniquesinwritingbusinesscommunication B

• Properpunctuationmarks B

• Correctgrammar B

• Unityandclarity B

• Paragraphing B

» External Written Business Communication

• Differentbusinesscorrespondence B

• Businessletters B

• Memorandums B

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• Agenda/minutes B • jobApplications B • Reports B • E-mails B • Facsimilemessages B

» Forms of External Business Writing • Natureandfeaturesofbusinessletters B • Letterofinquiring B • Letterofrequest B • Orderingletter B • Complaintletter B • Letterofrecommendation B • Letterofcongratulations B • Salespromotionletter B • Letterofappreciation B • Letterofcondolence B

» Responses to the following Business Letters • LetterofInquiring B • Letterofrequest B • Orderingletter B • Complaintletter B • InternalWrittenBusinessCommunication

» Nature and needs for internal communication B • Memorandum B • Agenda/minutes B • Report B • Differenttypesofmemorandaanditsformats B

STUDENTS CAN ANSWER ONLY IN ENGLISH MEDIUM (50%) » Grammar • Partofspeech B • Subject–verbagreement B • Theverb–alltenseforms B • Activevoiceandpassivevoice B • Directandindirectspeech B • Reportingstatements,questions,requestsandorders B • Modelauxiliaries B • Phrasalverbs B • Relativeclauses/Phrases B • Differentwaysofcombinationofsentences B • Idiomsanditsusages B

Note:- There will be a two parts of Question Paper. Student should get minimum 40% of marks for each part to be eligible for subject pass or 50% for a permenant credits.

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Intermediate Level Examination

51 BUSINESS MATHEMATICS AND STATISTICS

BUSINESS MATHEMATICS (60%)Course Description

This course of basic mathematics intends to introduce basic principles, laws and rules that are necessary to

develop an overview of application capabilities of the subject matters in the field of business, economics and

finance.

In brief this course covers Number Sets, Algebra, Polynomials, Factorization, Equations, Functions, Exponential

and Logarithmic Functions, Mathematics of Finance, and Graphs.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. Understand the importance of basic mathematics for the activities of an organisation.

2. Understand the concept of simple and compound interest.

3. Compute the future and present values of single, multiple and annuity cash flows.

4. Understand the effect of compounding frequency on the effective rate of interest.

5. Use mathematics for solving the problems related to the annuities, sinking funds, and amortization.

6. Calculate and explain the use of Time Value of Money.

Detailed Syllabus Level of Study

» Basic Mathematics

• Integers,decimalsandfractions B

• Basicarithmeticalprocesses B

• Factorization B

• Roots,powers,indicesandlogarithms B

• Ratios,percentagesandproportions B

• Simplelinearequations B

• Simultaneousequations B

• Quadraticequations B

• Matricesanddeterminants B

• Progressions

• Arithmeticprogressions B

• Geometricprogressions B

• Applicationofprogressionsinbusinesssituations B

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» Financial Mathematics

• Simpleandcompoundinterest B

• TimeValueofMoney B

• FutureandPresentvalue,CompoundandDiscounting B

• Annuitiesandperpetuities B

» Miscellaneous

• Permutations,andCombinations B

• BinomialTheorem B

» Graphs

• Selectionofanaxisandplottingagraph B

• Parametersofastraightlinegraph B

• Pointsofintersectionoftwographsanditssignificance B

• Demandandsupplysituationinamarket B

• Quadraticequationsandgraphs B

• CostsRevenue&Profitfunctionsandbreak-evenpointanalysis B

» Calculus

• Basicprinciplesofcalculus B

• Differentiation,Integrationoffunctionsandtheirbusinessandeconomicsapplications B

• Basicintegration B

STATISTICS (40%)Course Description

This course provides an introduction of the fundamental concepts, principles and methods of Business

Statistics. The topics included in this course cover Collection and Classification of Data, Data Analysis and

Tabulation, Index Numbers, Probability, Measures of Central Tendency, Measures of Dispersion, Correlation and

Regression Analysis.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. Understand the usefulness of statistics as a tool of decision making.

2. Understand the collection and presentation of statistical data.

3. Understand the basic statistical analyses in business situations.

4. Construct the simple linear regression model and use it for prediction.

Detailed Syllabus Level of Study

» Collection and Classification of Data

• Sourcesofstatistics B

• Primaryandsecondarydata B

• Continuousanddiscretedata B

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» Data Analysis and Tabulation

• Samplefrequencydistributions B

• Presentationintabular,graphicalandchartformincludingbarchartsandpiecharts B

• Samplingtechniques B

• Histogramsandorgives B

• FrequencycurvesandLorenzcurves B

» Index Numbers

• CalculationofLaspeyer’s(baseweighted)Index B

• CalculationofPaasche’s(currentweighted)Index B

• Comparisonofboth B

» Probability

• Definitionofprobability B

• Probabilityrules B

• Conditionalprobability B

• Randomexperiment B

• Independentevents B

• Mutuallyexclusiveevents B

• Treediagram B

• Bayestheorem B

» Measures of Central Tendency (Centrality)

• Calculationofmean,modeandmedianfromgrouped/ungroupeddata B

• Calculationofarithmeticmean B

• Calculationofgeometricmean,harmonicmean,weightedaveragemean

quartiles deciles and percentiles B

» Measures of Dispersion (spread)

• Calculationofrange,semi-quartilerange B

• Calculationofmeandeviation,standarddeviation,variance B

• Calculationofco-efficientofvariation B

» Correlation / Regression Analysis

• Scatterdiagram B

• Graphicallyidentifyingcorrelation B

• Calculativecorrelationcoefficient B

• Calculationofcoefficientofdetermination B

• Calculationofrankcorrelation B

• Leastsquareregressionanalysis B

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54 ACCOUNTING & CONTROL SYSTEMS

Course Description

The aim of this module is to introduce the practical aspects of accounting in view of improving the skills and

knowledge in financial accounting activities in various types of business organizations and make aware the

students, of the relevant systems and controls existing in a business organization.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. Develop skills on application of accounting concepts and methods.

2. Develop skills on preparation of financial statements for different types of organizations.

3. Understand the basic Accounting Ratios.

4. The need of Accounting Standards, and the framework for the preparation and

presentation of financial statements.

5. The Relevance of Sri Lanka Accounting Standards.

6. Understand the need of Basic Control Systems in a Business Organization.

ACCOUNTING (70%)Detailed Syllabus Level of Study

» Partnerships Accounts

• Formationofpartnerships

Basic understanding of partnership ordinance of 1890 B

• Partnershipagreementandrelevantsectionsofpartnershipordinanceapplicableto

partnership accounting B

• Partners’capitalandcurrentaccounts B

• Appropriationofprofitsandlossesincludingadjustmentsfor

guaranteed minimum share of profits B

• Interestondrawingsandcapitalandcurrentaccounts,annualaccountsofpartnerships B

• Preparationoffinancialstatementswiththechangesincompositionof

the partnership in a financial year B

• Adjustmentsforgoodwill,revaluationofassets/liabilitiesonadmissionand

retirement of partners or changes in profit sharing ratio B

» Company Accounts

• Basicunderstandingofformationofcompaniesandrelateddocumentsas

per Companies Act No. 07 of 2007 B

• Requirementsofmaintainingtheaccountsinacompanyasspecifiedin

Companies Act No. 07 of 2007. B

• Preparationofjournalentriesandledgeraccountsforissueofsharesincludingbonusand

rights issues and issue of debentures - (Excluding issue of shares on step by step method) B

• Accountingforprovisions,reserves B

» Preparation of financial statements of companies for management purposes (for internal use)

• ComprehensiveIncomeStatement(IncomeStatement) B

• StatementofFinancialPosition(BalanceSheet) B

• NotestotheFinancialStatements B

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» Computation of Accounting Ratios Using Accounting Information for Interpretation of

Financial Statements

Computation of following commonly used ratios

• Primaryratio B

• Secondaryratio B

• Grossprofitratioandnetprofitratio B

• Liquidityratios/shorttermsolvencyratios B

• Gearingratios/longtermsolvencyratios B

• Efficiency/turnoverratios B

• Preparation of financial statements using a given set of ratios B

» Preparation of Financial Statements for Non-Profit Organizations including Charitable

Institutions, Clubs & Associations B

• AccountingforStatutoryDeductions

• AccountingforpayrolltransactionsincludingPAYE,EPFandETF B

• AccountingforValueAddedTax(VAT)andWithholdingTax(WHT) B

» Sri Lanka Accounting Standards

• PrefacetotheSriLankaAccountingStandards C

• NeedforAccountingStandards C

• GeneralawarenessofSLFRSandLKAS C

• FrameworkforthepreparationandpresentationoffinancialstatementsissuedbyICASL B

• LKAS02-Inventories B

• LKAS16-Property,Plant&Equipments B

CONTROL SYSTEMS (30%)» Systems & Procedures

• Designofsystemsofaccountingandinternalcontrols C

• EssentialFeaturesofagoodinternalcontrolsystem C

» Control environment and control procedures

• Thecontrolenvironment–Definition&types C

• Controlprocedures–Definition&types C

• Organisation C

• Segregationofduties C

• Physicalcontrols C

• Authorizationandapproval C

• Arithmeticalandaccounting C

• Personnel C

• Supervision C

• Management C

• Acknowledgementofperformance C

• Budgeting C

• Segregationofduties C

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» Internal controls in specific areas of a business

Objectives & Internal control measures over the following areas

• Receipts&Payments B

• Cashandcashequivalents B

• SalariesandWages B

• SalesandReceivables B

• PurchasesandPayables B

• Property,PlantandEquipment B

• Inventories B

• Limitationsofinternalcontrols B

» Frauds & Errors

• Frauds-Definition&Types C

• Errors-Definition&Types C

• ClericalErrors C

• ErrorsofOmission; C

• ErrorsofCommission C

• ErrorsofPrinciple C

• CompensatingErrorsorOff-settingErrors C

• ErrorsofDuplication C

» Internal Audit

• InternalAudit-Definition&Objectives B

• InternalAuditorandExternalAuditor-Relationships B

• DistinctionbetweenInternalAuditandExternalAudit B

•Appointments B

•Qualifications B

•Status-Independence B

•ScopeofWork B

•Objectives B

•ConductofAudit B

•DeterminationofDuty B

•Removal B

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55 INFORMATION MANAGEMENT & APPLICATION IN BUSINESS

Course Description

The aim of this module is to develop knowledge and understanding of Information Systems, use of Information

Systems in business functions, essential aspects of business Information Systems development and delivery,

and the use of such systems for information management with an adherence to the proper controls and

standards, as required to take an informed and active role in organizational information management.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. Understand Information Technology fundamentals

2. Understand Information & Management levels

3. Understand the types of Information Systems

4. Understand Accounting Software Applications and Packages

5. Understand Computer hardware and Computer software

6. Understand Computer network and internet services

7. Understand Security and control issues and solutions

8. Understand Information system development

Detailed Syllabus Level of Study

» Information Technology

• DataandInformation C

• DataProcessing C

• Asystem C

• AnInformationSystem C

• FunctionsoftheInformationSystem: C

• ExamplesofInformationSystems C

• InformationTechnology(IT) C

• Computingtechnology C

• Communicationtechnology C

• Informationmanagementtechnology C

» Information & Management levels

• Structureofanorganization B

• Strategicmanagement B

• TacticalManagement B

• OperationalManagement B

• Decisionmakingprocess B

• Importanceoftheinformation B

• Valuesofinformation B

• Typesofinformation B

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» Types Of Information Systems

• ManualInformationsystems B

• SemimanualInformationsystems B

• Computer-BasedInformationSystem(CBIS) B

• FormalandInformalInformationSystems B

• ProcessControllingSystems B

• TransactionProcessingSystems B

• OfficeAutomationSystem B

• ManagementInformationsystems B

• DecisionSupportSystems B

• ExecutiveSupportSystems B

• FunctionalInformationSystemsinanOrganization B

• EnterpriseResourcePlanning(ERP) B

» Review Of Computers

• WhatisaComputer? C

• Whyarecomputerssoimportanttous? C

• Maincomponentofacomputer C

• ComputerHardware C

• ComputerSoftware C

• Communication C

• TheEvolutionofComputerSystems C

• TypesofComputers C

• Data/InformationStoragewithinaComputer C

» Computer Hardware

• TheSystemconfiguration C

• InputDevices C

• OutputDevices C

• CentralProcessingUnit(MicroprocessorChip) C

• RandomAccessMemory(MemoryModules) C

• Secondarystorage C

» Computer Software

• Classificationofsoftware C

• Systemsoftware C

• OperatingSystem(OS) C

• SystemSupport/Utilityprograms C

• LanguageTranslators C

• Applicationsoftware C

• Applicationsoftware C

• GeneralPurposeSoftware C

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• Wordprocessing C

• Spreadsheet C

• Presentation C

• WebBrowser C

• PIM C

• Graphic C

• Email C

• Multimediaplayers C

• VideoEditors C

• Desktoppublishing C

• ApplicationSpecificSoftware C

• SomeotherClassificationofApplicationSoftware C

• IntroductiontoAccountingsoftware C

» Accounting software

• Spreadsheetsoftware B

• Accountingpackages B

• AccountingpackagesinSriLanka B

• DatabaseManagementSystems B

• AdvantagesofDBMS B

» Computer Networks

• WhatisaNetwork C

• Networkhardwareequipments C

• Commutationmedias C

• TypesofNetwork C

• LocalAreaNetwork C

• WideAreaNetwork C

• Intranet C

• Extranet C

• Internet C

• ServicesofInternet C

» Security and Control

• Whysecurityisimportant B

• Threatsforcomputerbasedinformationsystems B

• IssuesinInformationsystems B

• informationsystemcontrols B

• Generalcontrols B

• Applicationcontrols B

• Networkcontrols B

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» Information System Development

• ImportanceofInformationsystemdevelopment C

• SystemDevelopmentLifecycle(SDLC) C

• SystemInvestigation C

• SystemAnalysis C

• SystemDesign C

• SystemImplementation C

• SystemMaintenance C

• Prototypingmethod C

• EndUserdevelopment C

• Outsourcing C

• ComparisonofApproaches C

» Disaster Recovery Plan

• Importanceofdisasterrecoveryplan B

• Short-termplans B

• Middle-termplans B

• Long-termplans B

» Current developments related to the subject C

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56 BUSINESS LAW AND MANAGEMENT

BUSINESS LAW (50%)

Course Description

This course intends to develop knowledge and understanding of the underlying principles relating to

business law and industrial law in a business environment of Sri Lankan context.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. An understanding of the legal system and how it is applicable in the business environment.

2. An understanding of principles of law of contract including contract of agency and sale of goods and

how it is applicable in the business environment.

3. An understanding of principles of law of negotiable instruments and how it is applicable in the business

environment.

4. An understanding of principles of industrial law and how it is applicable in the business environment.

5. An understanding of law of prescription and how it is applicable in the business environment.

Detailed Syllabus Level of Study

» Legal System

• ClassificationofCivilandCriminallaw C

• Sourcesoflaw C

• Personallaws C

• Thejudicialsystem C

» The law of contract

• Definitionofcontract B

• Offer B

• Acceptance B

• Consideration B

• Contractualcapacity B

• Legalobject B

• Genuinenessofconsent B

• Intentiontocreatelegalrelationship B

• Termsofacontract B

• Dischargeofacontract B

» The law of agency

• Generalnatureofagency B

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• Typesofagents B

• Creationofagency B

• Theauthorityofagent B

• Dutiesofagency B

• Terminationofagency B

• Thelawofsaleofgoods B

• Formationofcontractofsale B

• Passingofproperty B

• Transferoftitlebynonowners B

• Delivery B

• Acceptanceandpayment B

• Remediesoftheseller B

• Remediesofthebuyer B

» The law of negotiable instruments

• Characteristicsofnegotiableinstruments B

• Characteristicsofabillofexchange B

• Chequesandcrossings B

• Promissorynotes B

• Holderinduecourse B

• Acceptanceandpayment B

• Dishonourofabill B

• Endorsementofabill B

• Liabilityofpartiesonthebill B

» The industrial law

• Theindependentcontractorandemployee C

• Employees'ProvidentFundAct C

• Employees'TrustFundAct C

• PaymentofGratuityAct C

• Wagesboardsordinance C

• Shopsandofficeemployees'Act C

• Factoriesordinance C

• WorkmencompensationAct C

• Maternitybenefitsordinance C

• Women,youngpersonsandchildrenAct C

• IndustrialDisputesAct C

• Terminationofemployment C

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MANAGEMENT (50%)Course Description

This is an introductory course on basic concepts and theoretical foundations of management. The course

is aimed at providing the students with theoretical and conceptual understanding in management for the

purpose of interpreting various management scenarios. This involves discussions about basic concepts,

business and management, functions of management, introduction to office management, and introduction

to marketing management.

Learning Outcomes

On satisfactory completion of this course the student should be able to:

1. Compare and contrast the concepts of ‘Organization’ and ‘Business’.

2. Describe major business functions.

3. Explain the meaning of ‘Management”.

4. Identify different environmental forces, the sources of them and their impacts on business.

5. Describe the evolution of management thoughts.

6. Describe the process of rational decision making.

7. Basic elements of a business plan.

8. Identify core HRM functions for a business organization.

9. Leaders and Managers in business organizations.

10. The basic needs of employees and develop a motivation plan for a small business.

11. Describe the meaning and requirements as of effective communication.

12. Explain the meaning of management control and identify major controlling techniques in action in a

business organization.

13. Explain the fundamental elements in a marketing mix.

Detailed Syllabus Level of Study

» Understanding a Business

• Whatisanorganizationandbusiness? C

• Elementsoforganizations C

• Formal&InformalOrganizations C

• DefinitionofaBusiness C

• ElementsofaBusiness C

• BusinessFunctions C

• BusinessEthics C

» Understanding the Nature of Management

• DefinitionofManagement C

• Efficiency,EffectivenessandProductivity B

• NeedofManagement C

• TypesofManagers B

• RolesofManagers C

• ManagerialSkills C

• Business,BusinessEnvironmentandSociety B

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» Evolution of Management Thought

• IntroductiontoEvolutionofManagementThought C

• Administrativetheory C

• ScientificManagement C

• Bureaucracy C

• Thebehaviouralapproach C

• Thesystemapproach C

• Contingencyapproach C

• Japaneseapproach C

» Decision Making

• DefinitionsofDecisionMaking C

• TypesofDecisions(rational,Irrational,Programmed,Non-programmed) B

• StepsinRationalDecisionMaking B

» Process of P lanning

• MeaningandDefinitionofplanning C

• BenefitsofPlanning C

• ElementsofaPlan(Vision,Mission,Goals,Objectives,Strategies,Programs,Projects,

Policies, Procedures, Budgets, Rules) and their meanings B

• TypesofPlans(Corporate,Strategic,Tactical,Functional,Operational,Singleuse,Standing) C

» Process of Organizing

• MeaningandDefinitionofOrganizing C

• BasicstepsofOrganizingProcess B

• MeaningofOrganizationStructure C

• MeaningofStructuralElements(Specialization,Departmentation,Hierarchy,

Span of Management, Delegation, Formalization, Coordination) C

» The Process of Staffing

• Definition C

• Significance C

• IntroductionofHRMFunctions B

» Process of Leading

• MeaningandDefinitionofLeadership C

• Powerandleadership C

• Leadershipvs.Managership B

• DifferentDimensionsofLeadership(LeadershipTraits,LeadershipBehaviours,Environment) C

(No Leadership theory is expected)

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» Employee Motivation

• MeaningandDefinitionofWorkMotivation C

• WorkMotivationasaprocess C

• ContentofHumanMotivation(DifferenttypesofHumanNeeds) B

(No motivation theory is expected )

» Communication in Organization

• MeaningandDefinitionofCommunication C

• Processofcommunication B

• Typesofcommunication B

• BarrierstoeffectiveCommunication B

» Office Management

• MeaningandDefinitionofanOffice C

• FunctionsofanOffice C

• FunctionsofanOfficeManager C

• FundamentalsofRecordManagement B

• FundamentalsofFiling B

» Introduction to Marketing

• MeaningandDefinitionofMarketing C

• CoreConceptsofMarketing B

• MarketingManagementPhilosophies/Orientations B

• BasicsconceptsinMarketingMix C

Note: To be considered for a pass in BL & M a candidate should obtain a minimum 40% or 50% as

the case may be, in each of the parts Business Law as well as Management .

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Final Level Examination

58 TAXATION

Course Description

This module aims to impart knowledge of the law of taxation and its application to resident individuals and

entities. In addition to that, administration of the tax services and corporate tax compliance matters are also

covered. Also this syllabus aims to ensure that the students posses a sound knowledge of the principles of

Income Tax, Value Added Tax, and Stamp Duty and are able to apply this knowledge and skills to Business

situations.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. Ascertain the tax liability of an individual or a company.

2. Understand the basic statutory provisions relating to withholding taxes, payments, returns, assessments,

appeal settlement procedure and refunds.

3. Understand the obligations of a partnership under the income tax law.

4. Describe the basic principles of the operation of Value Added Tax and computation of VAT in a non

complicated situation.

5. Describe the basic principles of Economic Service Charge, Stamp Duty and

Nation Building Levy.

6. Handle the responsibilities of a medium scale organization under Sri Lankan tax laws.

Changes in Tax Laws

As the tax laws are amended frequently knowledge in tax laws shall be subject to the following policy.

1. Income tax - Questions in relation to a particular year of assessment will not be set before expiry of six

months from the end of year of assessment.

2. Other taxes - Questions will not be set within six months from the effective date of any amendment.

Detailed Syllabus Level of Study

» Income Tax Liability of a Resident Taxable Person

• Basisofchargeabilityforincometax. A

• Establishmentoftheresidenceofanindividualoracompany. A

• Computationofstatutoryincomefromfollowingsourcesofincome.

Trade, business, profession or vocation (excluding complicated situations and

specific -undertakings such as insurance, banking, leasing and shipping etc). A

Employment, net annual value and rent income. A

Dividends, interest, discounts, charges and annuities. A

Royalties, premiums and profit on sale of shares. A

Winnings from lottery, betting or gambling. A

Income from any other source. A

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• Computationoftotalstatutoryincome,assessableincome,taxableincomeand

the income tax liability of a resident person - Individual. A

• Computationoftotalstatutoryincome,assessableincome,taxableincomeand

the income tax liability of a resident - Companies. B

• Computationofbalanceincometaxpayableaftertakingintoaccountof

various tax credits including withholding taxes and Economic Service Charge. B

» Special Cases

• ComputationofdivisibleprofitorlossandtheliabilityofapartnershipforIncometaxand

the tax credits available to partners thereon. B

• LiabilityofacompanyforDividendTax,DeemedDividendTaxandSocialResponsibilityLevy. B

» Tax Administration and Withholding Tax System

• Selfassessmenttaxpayments. C

• ReturnofIncomeandconsequencesofnon-submissionofReturnintime. C

• Accountsandotherinformationtobesubmittedwithreturn. C

• Issueofassessmentsandtime-barprovisions. C

• Characteristicsofavalidappealandappealsettlementprocedure. C

• Finalityofassessmentsandpenaltyforincorrectreturns. C

• Taxrefundsandrecoveryactions. C

• Withholdingsystem. C

Pay as you earn scheme ( PAYE),

Deduction of tax from interest, dividends,

Government rewards and lottery prizes etc.

» Important Concepts and Case Law

• Profitsfromanadventureorconcerninthenatureoftradeandcapitalgainsnotliablefor

income tax C

• Expensesandoutgoingsincurredinproductionofincomeandexpenseincapitalnature C

• Applicationoffactsoffollowingtaxcases C

Wickremasinghe vs. CIT

Rajaratnam vs. CIR

Mahawitharana vs. CIR

Ram Iswara vs. CIR

CIT vs. De Zoysa

Rajapakse vs. CIT

Hayley & Co. Ltd vs. CIR

New Portman Ltd. Vs. Jayawardena and others

» Interpretation of following terms as per of the Inland Revenue Act. C

Authorised Representative

Business

Child

Executive Officer

Precedent Partner

Trade

Authorised Representative

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» Value Added Tax • ChargeabilityforVAT. • Registrationandderegistration. B • Taxableandexcludedsupplies. B • Exemptedsupplies(fewexamples). B • VATrates. B • Computationofout-puttax,in-puttaxandbalancetaxpayableofanoncomplicatedsituation. B • TaxInvoiceandVATReturn. B

» Basic Understanding of Other Taxes • EconomicServiceCharge. C • StampDuty. C

• NationBuildingTax. C

59 MANAGEMENT ACCOUNTING & BUSINESS FINANCE

Course DescriptionThis course intends to ensure that the students have acquired a sound knowledge in decision making techniques and their applications in Management Accounting and are able to prepare reports analyzing the position and performance of business.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. Explain and describe main features of job, batch, contract, process, operation / services costing.

2. Select the method of cost calculation appropriate for a given set of circumstances from absorption

and marginal costing.

3. State the elements of cost for a given product or service and describe in general how these elements

may be ascertained.

4. Prepare income / profitability statement using marginal and absorption costing and reconcile the profits

of the two statements.

5. Describe the nature and purposes of standards and standard costs for products and services.

5. Explain the role of forecasts, budgets and targets in terms of planning, control and motivation.

7. Select approaches and methods for the budgeting process which are consistent with a given business’s

stated objectives and circumstances.

8. Identify and evaluate alternative sources of business finance.

9. Carryout investment appraisals for decision making.

MANAGEMENT ACCOUNTING (75%)Detailed Syllabus Level of Study

» Cost and management accounting and financial accounting

• Describetheroleofcostandmanagementaccountingwithinanorganisation’smanagement

information system. B

• Comparefinancialaccountingwithcostandmanagementaccounting. B

• Explainthemeaningofcost,profit,investmentandrevenuecentres. B

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» Overheads

• Explaintheproceduresinvolvedincalculationofproductionoverheadabsorptionrates.

1. Allocation and apportionment of production overheads to cost centres using an

appropriate basis. B

2. Reapportionment of service cost centre costs to production cost centres.

(using the reciprocal method where service cost centres work for each other) B

3. Selection and application of appropriate bases for absorption rates. B

• Describemethodsofrelatingnon-productionoverheadstocostunits. B

» Materials

• IdentificationandExplanationofOrderingCostandHoldingCost. B

• CalculationofOptimal(Economic)recorderquantitieswithandwithoutQuantityDiscounts. B

• Establishmentofrecorderlevelswheredemandintheleadtimeisconstant. B

• EstablishmentofMaximumandMinimumStockLevels. B

» Cost Book Keeping

• Distinguishbetweeninterlockingandintegratedmethodsofcostbookkeeping. B

• Preparationofoperatingstatementusinginterlockingmethodofbookkeeping. B

• Preparationofoperatingstatementusingintegratedmethodofbookkeeping. B

• Reconciliationoffinancialaccountingprofitwithcostaccountingprofitwheninterlocking

accounting system is used. B

» Marginal and Absorption Costing

• Explainandapply,theconceptsofmarginalcostandcontribution. B

• Explaintheeffectofabsorptionandmarginalcostingoninventoryvaluationand

profit determination. B

• Calculationofprofitunderabsorptionandmarginalcosting. B

• Reconciliationofprofitscalculatedunderabsorptionandmarginalcosting. B

• Explaintheadvantagesanddisadvantagesofabsorptionandmarginalcosting B

» Job Costing, Batch Costing & Contract Costing

• Explainthecharacteristicsofjobandbatchcosting. B

• ExplainthefeaturesofJob/Batchcostcard. B

• Explainthesituationswheretheuseofjoborbatchcostingissuitable. B

• Preparationofcostrecordsandaccountsinjobandbatchcostingsituations. B

• Calculationofjobcostsfromgiveninformation. B

» Process Costing

• Explainthecharacteristicsofprocesscosting. B

• Explainthesituationswheretheuseofprocesscostingissuitable. B

• Explaintheconceptsofnormalandabnormallossesandabnormalgains. B

• Calculationofthecostperunitofprocessoutputs. B

• Preparationofprocessaccountsforsituationsinvolvingnormallossesabnormallossesand

abnormal gains B

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• Explaintheconceptofequivalentunitsandcalculateequivalentunits. B

• PreparationofaprocessaccountsusingtheweightedaverageandFIFOmethods. B

• Preparationofprocessaccountsinsituationswhere-

1. There is no work in progress B

2. There is work in progress B

3. There are losses and gains identified at different stages of the process. B

• Explainthedifferencebetweenby-productsandjointproducts. B

• Explainaccountingtreatmentforbyproducts. B

• Explaindifferentbasisofapportionmentjointcostamongbyproducts.

1. Physical Units basis B

2. Sales Revenue basis B

3. Net Sales Revenue basis B

• Preparationofprocessaccountsinsituationswhereby-productsand/orjointproductsexists. B

» Service / Operation Costing

• Explainsituationswheretheuseofservice/operationcostingisappropriate. C

• Explainthecharacteristicsofservicecosting. C

• Illustratesuitableunitcostmeasuresthatmaybeusedindifferentservice/operationsituations. C

• Carryoutservicecostanalysisinsimpleserviceindustrysituations.Ex-TransportIndustry. B

Budgeting

» Nature and Purpose of Budgeting

• Explainwhyorganisationspreparebudgets. B

• Explaintheadministrativeproceduresfollowedinthebudgetingprocess. B

• Explainthedifferentstagesinthebudgetingprocess. B

• Explainthefunctionsofbudgetcommittee,andbudgetmanual. B

• Explainthetermsbudgetcentre,budgetarycostallowance,budgetarycontroland

Responsibility Accounting. B

» Functional budgets

• Describethemeaningoftheterm‘principalbudgetfactor’. B

• Preparationofsales,production,materials(usageandpurchases),labourandoverheads,budgetsB

Preparation of Cash Budget and Master Budget. (i.e Budgeted Profit and Loss Account and

Balance Sheet). B

• Explaintheconceptofzerobasedbudgeting,Itsadvantagesanddisadvantages. B

» Flexible Budgets

• Describeandpreparefixedandflexiblebudgets. B

• Preparationofbudgetarycontrolstatementusingflexiblebudget. B

• Explaintheusefulnessofflexiblebudgets. B

Standard Costing

• Explainthemeaningofstandardcostandstandardcosting. B

• Explaintheuseofstandardcosts. B

• Explaindifferenttypesofstandards

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Basic Standards B

Ideal Standards B

Attainable Standards B

Current Standards B

• Ascertainthestandardcostperunitunderabsorptioncostingandmarginalcosting B

» Basic variance analysis under absorption and marginal costing

• Calculateandinterpretthefollowingvariances:

Materials, Labour, variable overhead, Fixed overhead B

Sales price, volume, mix and quantity variances based on standard profit margins. B

• Explainpossiblecausesforabovevariances. B

• Identifytheinterrelationshipsbetweenabovevariances. B

• Calculationofactualorstandardfigureswherethevariancesaregiven. B

• CalculateActivityRatio,VolumeRatioandefficiencyratio. B

» Reconciliation of budgeted profit and actual profit B

• Reconcilebudgetedprofitwithactualprofitunderstandardabsorptioncostingand

standard marginal costing. B

Short-Term Decision-Making Techniques

» Cost-volume-profit (CVP) analysis

• ExplainmajorassumptionsunderlyingCVPanalysis. B

• Calculateandexplainthemeaningofbreak-evenpoint,marginofsafetyand

contribution sales ratio. B

• Calculatethevolumerequiredtoachieveatargetprofit. B

• Fromthegivendatapreparetraditionalandcontributionbreak-evenchartsand

Profit/volume charts. B

• PerformCVPanalysistosingle-productandMulti-productssituations. B

» Relevant costing

• Describetheconceptofrelevantcosting. B

• Calculatetherelevantcostsformaterials,labour,overheadsandmachinery. B

• Explainandapplytheconceptofopportunitycost. B

» Limiting factors

• Identifyasinglelimitingfactorfromthegiveninformation. B

• Determinetheoptimalproductmixwhereanorganisationisrestrictedbyasinglelimitingfactor. B

» Make-or-buy and other short-term decision making

• Describetheissuesinvolvedinmakevs.buyandoutsourcingdecisions. B

• Compare“make”costswith“buy-in”coststoidentifyleastcostoption. B

• Comparein-housecostsandoutsourcecostsofcompletingtasksand

consider other issues surrounding this decision. B

• Applyrelevantcostingprinciplesforshutdown,one-offcontractsand

the further processing of joint products decisions. B

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BUSINESS FINANCE (25%) Cost of Capital » Sources and Users of Finance C

» Estimating the cost of equity

• Applythedividendgrowthmodelanddiscussitsweaknesses B

» Estimating the cost of debt and other Capital instruments

• Calculatethecostofcapitalofarangeofcapitalinstruments,including:

Irredeemable debt B

redeemable debt B

convertible debt B

preference shares B

bank debt B

» Estimating the overall cost of capital • Distinguishbetweenaverageandmarginalcostofcapital. B

• Calculatetheweightedaveragecostofcapital(WACC)usingbookvalueand

market value weighting. B

Investment Appraisal » The nature of investment decisions and the appraisal process

• Explainthedifferencebetweencapitalandrevenueexpenditure. C

• Describetheroleofinvestmentappraisalinthecapitalbudgetingprocess. C

• Describethestagesofthecapitalbudgetingprocess. C

» Non-discounted cash flow techniques

• Identifyandcalculaterelevantcashflowsforinvestmentdecisions. B

• Calculatepaybackperiodanddiscusstheusefulnessandlimitationsofpaybackas

an investment appraisal method. B

• Calculatereturnoncapitalemployed(accountingrateofreturn)anddiscussitsusefulnessand

limitations as an investment appraisal method. B

» Discounted cash flow (DCF) techniques

• Explainthemeaningoftimevalueofmoney. C

• ExplainthemethodsofDiscountedCashFlow,NetPresentValue(NPV),

Internal Rate of Return (IRR), Discounted Pay back Period (DPP), Profitability Index (PI),

Net Terminal Value (NTV). B

• Calculationofpresentvalues,includingthepresentvalueofanannuityandperpetuity,

and the use of discount and annuity tables. B

• Calculatenetpresentvalueanddiscussitsusefulnessandlimitationsasan

investment appraisal method. B

• Calculateinternalrateofreturnanddiscussitsusefulnessandlimitationsasan

investment appraisal method. B

• ExplainthesuperiorityofDCFmethodsovernon-DCFmethods B

• ComparetherelativemeritsofNPVandIRR. C

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60 ADVANCED FINANCIAL ACCOUNTING

Course DescriptionThe aim of this module is to enhance the ability of preparation and presentation of financial statements in accordance with the Generally Accepted Accounting Principles and Sri Lanka Accounting Standards.

Learning Outcomes On satisfactory completion of this course student should be able to:

1. Apply accounting methods, controls and techniques adopted in organizations.2. Prepare and present financial statements of business organization.3. Learning of accounting treatment for branch Activities.4. Basic interpretation of financial statements. 5. Basic understandings of public sector accounting.6. Learning how accounting transactions are processed by using information technology.

The knowledge of accounting acquired at Foundation Level and Intermediate Level is extended to this level so as to apply the accounting principles to practical accounting problems dealt with in the Final Level. Therefore, it is expected from the candidates that they should study the topics introduced at the Foundation Level and Intermediate Level in greater depth with the contents of the new topics introduced in the Final Level.

Detailed Syllabus Level of Study» Regulatory Framework • Relevanceofcompanylawinpreparationofcompanyaccounts C • ApplicabilityofSriLankaAccountingandAuditingStandardsAct C • OtherregulatoryrequirementssuchasSEC,CSE,etc. C

» Sri Lanka Accounting Standards • LKAS01-Presentationoffinancialstatements A • LKAS07-CashFlowstatements B • LKAS08-AccountingPolicies,ChangesinAccountingEstimatesandErrors B • LKAS10-EventsaftertheBalanceSheetDate B • LKAS11-ConstructionContracts B • LKAS12-IncomeTaxes B • LKAS17-Leases B • LKAS23-BorrowingCosts B • SLFRS03-Businesscombinations B • LKAS27-ConsolidatedandSeparateFinancialStatements B • LKAS18-Revenue B • LKAS37-Provisions,ContingentLiabilitiesandContingentAssets B • LKAS38-Intangibles/Assets B • SriLankaAccountingStandardsforSmallerEnterprises(SLASSE) B

» Partnership Accounts • AccountingforLifeInsurancePolicies B • Dissolutionofpartnerships(ExcludingPieceMealDissolution) B • Amalgamationofpartnerships B

• SaleandconversionofapartnershiptoaLimitedLiabilityCompany B

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» Miscellaneous Accounts

• Accountingforbranches B

Decentralized accounting system

• Accountingforinvestments B

• Leasing(BuyerandSeller'sBooks) B

» Company Accounts

• Redemptionofshares&debentures A

• Preparationandpresentationoffinancialstatementsforpublicationpurposeswith

relevant disclosures specified in Sri Lanka Accounting Standards A

• BonusIssueandSharesplit A

» Basic Consolidated Financial Statements (Groups with one subsidiary only,

excluding foreign subsidiaries) • PreparationofbasicconsolidatedstatementofFinancialPosition B • PreparationofbasicconsolidatedstatementofcomprehensiveIncome B • Inthiscontextthefollowingadjustmentsaretobetested: o Provision for unrealized profit for stock and other tangible assets B o Elimination of inter company indebtedness B o Revaluation of PPE of subsidiary B o Adjustment for inter company income and expenses including inter company dividends B o Computation of Goodwill/ gain from a bargain purchase, non controlling interest & consolidated reserves B

» Interpretation of Financial Statements

• Usesandlimitationsofaccountingratios B

• Computationofcommonlyusedaccountingratiosincludinginvestorsratios B

• Interpretationoffinancialstatementsusinggivenratiosandpreparationofasimplereport B

» Cash Flow Statement (Excluding Group Cash Flow Statements)

• Usefulnessofcashflowstatements B

• Preparationofcashflowstatements(direct/indirectmethod)intermsofLKAS07 B

» Regulatory and Institutional Framework in Public Sector

• RelevanceofFinanceActNo.38of1971 C

• Constitutionalprovisionsrelatingtopublicfinance C

• Financialregulations-financialmanagementandpublicaccountability C

• Otherregulatoryrequirements C

• Parliament,CabinetofMinisters,MinistriesandDepartments,Auditor-General,

Provincial Councils, Local Authorities and State Owned Enterprises C

» Parliamentary Control of Public Finance • Consolidatedfund,contingenciesfundandprovincialfunds C • BudgetprocessandParliament C • Budgetformulation-preparationofrevenueandexpenditureestimates C • AuditofaccountsandAuditorGeneral’sreports C • CommitteeonPublicEnterprises(COPE)andCommitteeonPublicAccounts(COPA)review C

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61 AUDITING

Course DescriptionThis syllabus is designed to provide the students with a basic understanding of all aspects of auditing. These include accepting and planning the audit, evaluating internal controls, verifying account balances and financial statement assertions, reporting on audited financial statements, as well as auditing standards, and professional and personal ethical responsibilities of auditors.

Learning Outcomes On satisfactory completion of this course student should be able to:1. Understand the nature and purpose of auditing.2. Describe the regulatory framework governing the external audit of financial statements, including an understanding of Sri Lanka Auditing Standards where appropriate and Professional Ethics and codes of conduct are observed.3. Describe the rights, duties and professional obligations of an auditor.4. Explain the process of planning an audit and the necessity for an appropriate audit programme taking into account audit evidence and audit risk.5. Describe the audit evidence required in specified situations.6. Describe the audit work required at the final review and report stage of an audit.

Detailed Syllabus Level of Study» Introduction to Auditing • DefinitionofAudit C • OriginofAudit C • DifferencebetweenAccounting,AuditingandInvestigation C • SLAuS200–Objective&GeneralPrinciplesGoverninganAuditofFinancialStatements B • DeterminingtheScopeofAudit C • ObjectsofAudit Main Object - Expression of Expert Opinion C Secondary Objectives-Detection and Prevention of Frauds and Errors C • SriLankaAccountingandAuditingStandardsActNo15of1995 B • SLAuS240-TheAuditor’sResponsibilitytoConsiderFraudinanAuditofFinancialStatements B • DifferentclassesofAudit B • AdvantagesofanAudit-Auditsofdifferenttypesofentitiesandtheiradvantages. C

» Audit Planning and Supervision • SLAuS300–PlanninganAuditofFinancialStatements B • DocumentingtheAuditPlan C • ConsiderationsattheCommencementofaNewAudit C • SLAuS315–UnderstandingtheEntityanditsEnvironmentandAssessingtheRiskof Material Misstatement B • SLAuS330–TheAuditor’sProceduresinResponsetoAssessedRisks B • SLAuS210–TermsofAuditEngagements B • SLAuS220–QualityControlforAuditsofHistoricalFinancialInformation C • SLAuS620–UsingtheWorkofanExpert C

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• SLAuS600–UsingtheWorkofAnotherAuditor C

• DocumentationofAuditworkandAuditFiles. B

• SLAuS230–Documentation B

• AuditWorkingPapers,Retention&Ownership C

• SLAuS320–AuditMateriality C

» Execution & Reviewing the Audit

• CompliancetoAccountingStandards,AuditingStandardsandEnactments C

• SLAuS500–AuditEvidence B

• TestsofControls&SubstantiveProcedures-Definitions. C

• GatheringAuditEvidence C

• AuditinginDepth&TestChecking C

• SLAuS520–AnalyticalProcedures A

• SLAuS530-AuditSamplingandotherMeansofTesting C

• SLAuS580-ManagementRepresentations C

• SLAuS610–ConsideringtheWorkofInternalAudit C

» Auditing in a Computer Information System Environment

• ProblemsinanEDPEnvironment C

• ControlsinanEDPEnvironment

General Controls C

Application Controls C

• ComputerFrauds B

• AuditapproachinanEDPEnvironment C

• ComputerAuditPrograms C

» Test of Control and Substantial Procedures

• PropertyPlant&Equipments,Trade&OtherReceivables,Investments C

• Inventories,Cash&BankBalances,LongTermLiabilities,BankOverdrafts C

• Trade&OtherPayables,Revenue,Purchases,Expenses C

• StatedCapital&Reserves C

• Dividends C

• ContingentLiabilities C

• AuditingofExpenses C

• SLAuS505–ExternalConfirmations C

• SLAuS510–InitialEngagement–OpeningBalances C

» Tests of Controls & Substantive Procedures - Inventory and Work in Progress

• TheDutyofanAuditorinconnectionwithStocks&WorkinProgress C

• PhysicalVerificationofStocks,AttendanceofAuditorduringphysicalverificationofStocks&

examination of records. A

• Ensuringtheownershipoverthestocks C

• CutoffProcedures B

• MethodsusedintheValuationofdifferentclassesofStocks&WorkinProgress C

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» Typical Audit Programs and Internal Control Questionnaires on Specific Items • Cash&PettyCash C • BankBalances&BankReconciliationStatements C • Wages&Salaries C • Loans&Advances C • Purchases&PurchasesReturns C • Sales&SalesReturns C • TradeReceivables&Payables C • Inventories C

» Auditing in the Public Sector • ProvisionsoftheConstitutionoftheDemocraticSocialisticRepublicofSriLanka C • ProvisionsoftheFinanceActNo.38of1971 C • TheCommitteeonPublicEnterprises-COPE C • TheCommitteeonPublicAccounting-COPA C

» Audit of Limited Companies – Companies Act No. 07 of 2007 • QualificationsofanAuditorofaLimitedCompany C • Disqualifications C • AppointmentoftheFirstauditor C • Subsequentappointments C • Appointmentofauditorbyspecialresolution,casualvacancies C • PowersoftheBoardofDirectorstoappointauditor C • RemovalofAuditor C • RemunerationandExpensesofanAuditor C • Rights,PowersandDutiesofanAuditor C

» Audit of Limited Company – Specific Considerations Audit of Financial Statements – Statutory Requirements C • BooksofAccountsandStatutoryRecordstobekeptbytheCompany C • AnnualAccountsandBalanceSheet-DisclosuresandPresentation. C LKAS 01 - Presentation of Financial Statements B

» Corporate Governance, Compliance and Monitoring - Regulatory Frame Work • CodeofProfessionalConductsandEthics–AATSL A • CodeofBestpracticeonCorporateGovernance C • LiabilityofanAuditorundertheCompaniesAct C • LiabilityforNegligence C • LiabilityofanAuditortothethirdparties C • SLAuS250–ConsiderationofLawsandRegulationsinanAuditofFinancialStatements C

» Audit report • SLAuS700–TheAuditor’sReportonFinancialStatements B • OpinionastoTrueandFairView,ReportVsCertificate C • ReportingRequirementsundertheCompaniesActNo07of2007 C • SLAuS560–SubsequentEvents B • SLAuS570–GoingConcern B • AuditOpinions B • PreparationofAuditReport B

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62 BUSINESS COMMUNICATION - II

Course Description

This module intends to familiarize students with language used in the fields of accountancy. The primary focus

of this module is to equip students to deal with accounts, audit related reading, writing and speech activities

to which the required language structures (grammar and vocabulary) have been integrated, as well as simple

office practices such as simple letters, memos, accountancy related explanations and related practical tasks.

The course also provides students with job application and interview skills. It is envisaged that the student

who successfully completes this course will have an intermediate level of proficiency in the language and will

be able to function in an accounts related environment.

Learning Outcomes

On satisfactory completion of this course student should be able to:

1. Comprehend problems and issues.

2. Discuss problems with others.

3. Contribute at discussions.

4. Report incidents, main points at meetings and discussions.

5. Express views on job advertisements, vacancies,

6. Explain matters pertaining to accounts and auditing.

Detailed Syllabus Level of Study

» Understanding (listening) and Speech

• Newvocabularyrelevanttothefieldofaccountingandauditing B

• Homonyms,synonymsandantonyms B

• Choosingmeanings B

• Derivingmeaningincontext B

• Sourcesofobtainingmeaning B

• Directandindirectspeech B

• Socialinteractionintheoffice B

• Officialinteractionintheoffice B

• Telephoneskill B

• Meetingsandseminars B

» Reading & Understanding

• Officenotices,circulars,minutesandmemos B

• Newsletters,journalsandmanuals B

• Documentsrelatedtoaccountsandcommerce B

• Minutesofmeetings B

• Lettersandstatements B

• Exportimportdocumentation B

• Receipts,claimsandvouchers B

• JobVacanciesandadvertisements B

• Tendernotices B

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» Writing

• Fillingforms B

• Respondingtocorrespondence B

• Respondingtoinquiries B

• Writecorrespondence B

• Makingwrittensuggestions

• Givingexplanations B

• Takingdownminutes B

• Interpretnon-verbaltoverbal–graphs,chartsetc B

• Simplereports

• E-mail,Faxetc. B

» Verbal – listening and responding

• Telephone B

• Meetings B

• Presentations B

» Written Correspondence – reading, understanding and responding

• Telegrams&telex B

• Minutesofmeetings B

• Lettersofrequest B

• Lettersofcomplain B

• Lettersofapology B

• Invitations B

• Lettersofinquiry B

• Appointmentletters B

• Lettersofacceptance B

• Lettersofresignation B

» Form filling

• Jobapplicationsandcoveringletter- B

• Leaveapplication B

• Incrementalbenefitforms B

• ApplicationsForClaims(ArrearsEtc) B

• TelegraphFormsAndMoneyOrderForms. B

• OpeningBankAccounts B

• MotorVehicleLicenses B

• TaxForms B

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» Reports

• TypesofInformation B

• SourcesofInformation B

• GatheringInformation. B

• ObservationAndResearch B

• Questionnaire B

• Surveys B

• RelevantLiterature B

• Internet B

• Consultation B

» Graphical representation

• LineGraphs B

• BarCharts B

• PieCharts B

• Tables B

• Pictorials B

» Telecommunication

• TelephoneDirectory B

• RainbowPages B

• Tele-Hunting B

• Tele-Conferencing B

• EMail B

• MobilePhone B

• SMS.Use B

• BankCardsAndCreditCards B

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FOUNDATION EXAMINATION

SUBJECT NO CODE DURATION

Basic Accounting 50 BAC 03 Hours

Economics 52 ECO 02 Hours

Business Studies 53 BSD 02 Hours

Business Communication - I 57 BCI 03 Hours

INTERMEDIATE EXAMINATION

SUBJECT NO CODE DURATION

Business Mathematics & Statistics 51 BMS 03 Hours

Accounting & Control Systems 54 ACS 03 Hours

Information Management & Application in Business 55 IMAB 03 Hours

Business Law and Management (Two Papers) 56 BLM 03 Hours

FINAL EXAMINATION

SUBJECT NO CODE DURATION

Taxation 58 TAX 03 Hours

Management Accounting and Business Finance 59 MABF 03 Hours

Advanced Financial Accounting 60 AFA 03 Hours

Auditing 61 AUD 03 Hours

Business Communication - II 62 BCII 03 Hours

EXAMINATION STRUCTURE

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EXEMPTIONS UNDER REVISED SYLLABUS(Effective from January 2012 Examination)

1 Subject Exemptions - Foundation / Intermediate Levels

Registered Students who have passed the G.C.E. (A/L) Examination SRI LANKA / (UK) in the

following subjects are eligible to be exempted from Foundation / Intermediate examination

subjects as indicated below:

2 Complete Exemption from the Foundation Examination

1 Fundamental (Knowledge Module) of ACCA (UK)

2 National Diploma / National Certificate in Business Studies conducted by Government Technical

Colleges / Advanced Technological Institutes

3 Certificate in Banking and Finance (CBF) Examination of the Institute of Bankers (SL / UK)

4 Diploma in Management Studies (OUSL)

5 Association of Business Executives (ABE) Final Level Examination

3 Complete Exemption from Foundation Examination and the subject Business Mathematics and Statistics (BMS) of the Intermediate Examination

1 CAB - I of CA Sri Lanka

2 Certificate Level - CIMA (UK)

3 02nd year examination of the HNDA / HNDC / HNDM conducted by- Government Technical Colleges /

Advanced Technological Institutes

4 01st and 02nd year examinations of Commerce and Management Degrees of a UGC (SL) recognised

University

5 Technician Stage of ICMA (SL)

(i) G.C.E. (A/L) Subject

1 Accounting

2 Pure Mathematics / Combined Maths /

Applied Mathematics / Business Statistics

3 Economics

4 Business Studies / Commerce and Finance

5 General English

(ii) I.A.B. Final Examination

AAT - Foundation and Intermediate Exempted Subject

1 Basic Accounting

2 Business Mathematics and Statistics

3 Economics

4 Business Studies

5 Business Communication - I

(ii) Basic Accounting Only

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Important: A certificate of exemption should be applied for and obtained before applying for examinations.

5 Complete Exemption from Foundation and Intermediate Examinations

i. A Degree of a UGC (SL) Recognised University with passes in ;

(a) Accounting (b) Business Mathematics & Statistics and (c) MIS & IT Applications in Accounting

ii. 3rd year Examinations of HNDA

iii. Passed Finalist of HNDC / HNDM conducted by - Government Technical Colleges /

Advanced Technological Institutes

iv. National Certificate for Accounting Technicians (NCAT) conducted by Government Technical Colleges.

v. Fundamental Level (Knowledge & Skills Modules) of ACCA (UK)

vi. Diploma examination of ICMASL

6 Exemption for Other University Degrees Recognised by UGC (SL) except those referred to at

5(i) above

Complete Foundation Level Examination.

Subjects and Examination Passed at

CA (SL) Examination

1 Individual subjects of CAB - I

2 "C" or above grade pass for

Accounting Applications and Taxation at

CAB - II Examination

3 "C" or above grade pass for

Fundamentals of Management Accounting

and Business Finance at CAB - II Examination

Subjects and Examination exempted at AAT (SL)

Examinations

1 Corresponding subjects of Foundation

Examination and the subject BMS of

Intermediate Examination

2 Accounting and Control Systems at the

Intermediate Examination and Advanced

Financial Accounting at the Final Examination

3 Management Accounting & Business Finance

at the Final Examination

4 The scheme of exemptions for those who have a pass at level "C" or above in individual subjects

of the CA Sri Lanka Certificate in Accounting and Business examinations is as follows :-

Note - 1

Any other qualifications acceptable to the Governing Council of AAT Sri Lanka will be decided case by case.

Note - 2

If previous entitlement criteria for granting of exemptions have not been revised under the current

syllabus, exemptions for such cases would be granted appropriately under the criteria that prevailed at

that time.

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SUGGESTED WEIGHTINGS IN TERMS OFSTUDY TIME ALLOCATION

Note: These weightings do not Indicate the weightage in Examination papers

SYLLABUS CONTENT AREAS WEIGHTING

50 BASIC ACCOUNTING

Concepts and Underlying Principles 10%

Accounting Process 20%

Preparation of Financial Statements 40%

Control Accounts and Subsidiary Ledgers 10%

Cost Accounting 15%

Basic Understanding of Business & Professional Ethics 5% 100%

52 ECONOMICS

Basic Economic Problems and Elementary Theory Price 25%

Consumer Behaviour 20%

National Income 20%

Money and Price Level 20%

Government and Economics 10%

Current Issues Related to the Subject 5% 100%

53 BUSINESS STUDIES

Export and Import Trade 10%

Business Entities 15%

Banking, Finance Companies, Commercial Institutions 30%

Insurance 10%

Money Market in Sri Lanka 10%

International Trade 15%

Capital Market in Sri Lanka 5%

Current Issues Related to the Subject 5%

100%

57 BUSINESS COMMUNICATION I

Forms of Communication within an organization, External Written Business Communication 10%

Forms of External Business Writing 20%

Language Proficiency 10%

Internal Written Communication 10%

English Grammar 50%

100%

51 BUSINESS MATHEMATICS AND STATISTICS

BUSINESS MATHEMATICS (60%)

Basic Mathematics 10%

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Financial Mathematics 15%

Progressions & Calculus 15%

Miscellaneous 10%

Graphs 10% 60%

STATISTICS (40%)

Collection and Classification of Data 5%

Data Analysis and Tabulation 5%

Index Numbers 5%

Probability 10%

Measures of Central Tendency and Measures of Dispersion 10%

Correlation / Regression Analysis 5% 40%

54 ACCOUNTING & CONTROL SYSTEMS

Partnership Accounts 25%

Preparation of Financial Statements - Companies / Accounting Standards 25%

Accounting Information for Interpretation of Financial Statements /

Non Profit Organisation / Statutory Deductions 20%

Control Systems 30%

100%

55 INFORMATION MANAGEMENT & APPLICATION IN BUSINESS

Information Technology & Review of Computers 15%

Information & Management Levels & Types of Information Systems 30%

Hardware, Software 15%

Security & Controls 15%

Accounting Softwares & DBMS 10%

Information System Development and Disaster Recovery Plan 15%

100%

56 BUSINESS LAW AND MANAGEMENT

BUSINESS LAW (50%)

Law of Contract / Legal System 15%

Law of Agency 5%

Sale of Goods 10%

Negotiable Instruments 10%

Industrial Law 10%

50%

MANAGEMENT (50%)

Understand Business, Nature of Management, Evoluation of Management 15%

Functions of Management (Decision Making, Planning Organising, Staffing, Leading, Motivation) 20%

Communication, Organisational Control, Office Management 5%

Marketing 10%

50%

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58 TAXATION

Income Tax Computations - Individuals 30%

Taxation of Companies / Special Cases 35%

Tax Administration 10%

Important Concepts and Case Law 10%

Value Added Tax 10%

Basic Understanding of Other Taxes 5%

100%

59 MANAGEMENT ACCOUNTING AND BUSINESS FINANCE

Marginal & Absorption Costing, Short-term Decision Making 30%

Cost Book Keeping, Job Costing, Batch Costing, Contract Costing 10%

Standard Costing, Process Costing 20%

Budgeting 15%

Business Finance 25%

100%

60 ADVANCED FINANCIAL ACCOUNTING

Regulatory Framework 5%

Sri Lanka Accounting Standards 30%

Preparation Financial Statements (Partnership, Company Accounts, Miscellaneous Accounts) 45%

Interpretation of Financial Statements 10%

Public Sector Accounting 10%

100%

61 AUDITING

Introduction of Auditing 10%

Audit Planning, Review, Execution 25%

Test of Controls & Substantial Procedures, Typical Audit Programs 30%

Audit of Limited Companies / Audit Report 15%

Corporate Governance, Compliance & Monitoring, Public Sector Auditing 20%

100%

62 BUSINESS COMMUNICATION II (English)

Speech and Vocabulary 20%

Reading and Understanding 10%

Report Writing, Graphical Representation 40%

Written Correspondence 30%

100%

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30%

50%

20%

100%

Description

Will comprise 10 questions from Financial Accounts and 5 questions from Cost Accounting.

Financial Accounting.

2 questions to be answered Out of three questions (Financial Accounting and Cost Accounting)

(52) Economics

Multiple choice questions

Optional questions

40%

60%

100%

Will comprise 20 questions

4 questions to be answered Out of 6 questions.

Will comprise 20 questions

4 questions to be answered Out of 6 questions.

(53) Business Studies

Multiple choice questions

Optional questions

40%

60%

100%

STRUCTURE OF QUESTION PAPERSNEW SYLLABUS – JUNE 2010 EXAMINATION

(51) Business Mathematics and Statistics

Multiple choice questions

Compulsory questions

Optional questions

30%

50%

20%

100%

Will comprise 15 questions from Business Mathematics & Statistics

Business Mathematics & Statistics

2 questions to be answered Out of three questions.

Intermediate Level

Foundation Level

Neme of Subject

(50) Basic Accounting

Multiple choice questions

Compulsory questions

Optional questions

Weighted

(57) Business Communication I

All questions should be answered. 50% in own language (Sinhala, Tamil, English) and 50% only in English medium.

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(54) Accounting and Control Systems

Multiple choice questions

Compulsory questions

Optional questions

Weighted

20%

10%

50%

20%

100%

Description

Accounting Will comprise 10 questions.

Control SystemWill comprise 5 questions.

Accounting

2 questions to be answered Out of three questions. (Accounting and Control systems)

(55) Information Management &

Application in Business

Multiple choice questions

Compulsory questions

(56) Business Law

5 questions to be answered out of

6 questions.

(56) Management

5 questions to be

answered out of 6 questions.

(58) Taxation

(59) Management Accounting and

Business Finance

All Questions are to be answered.

(60) Advanced Financial Accounting

(61) Auditing

(62) Business Communication II (English)

Final LevelNew Subjects Description

40%

60%

100%

50 marks

50 marks

4 questions to be answered out of 6 questions.

Business Law

Management

75% from Management Accounting and 25% from Business Finance.

All Questions are to be answered.

All Questions are to be answered.

All Questions are to be answered.

All Questions are required to be answered.

Will comprise 20 questions

Weighted Description